City Home News

The National Association of Realtors says home sales should narrowly fluctuate narrowly with a gradual upturn. The national median existing-home price should ease by 1.3 percent to $219,100 in 2007 before rising 1.7 percent next year. The median new-home price will probably fall 2.3 percent to $240,800 this year, and then grow by 2.6 percent in 2008.

The 30-year fixed-rate mortgage is likely to increase to 6.6 percent in the third quarter and then hover at that level through 2008.

This reinforces the fact that buying a house, whether its an investment or a home to live in, is a long-term investment. Not unlike the stock market, price declines only really matter if you are forced to sell. The value of investment properties must be weighed against the prospects for other investments, but an owner occupant has a much better chance of benefitting from homeownership as a home for this purpose must primarily be weighed against a cost without prospects for profit--renting.